ETF Education Report: JPMORGAN SHORT DURATION CORE PLUS ETF (JSCP)

What this ETF is trying to do

The JPMORGAN SHORT DURATION CORE PLUS ETF (JSCP) is an exchange-traded fund listed on the NYSE. While specific holdings are not listed in this report, ETFs like this generally aim to manage investments with a "short duration," which often refers to bonds that mature in a relatively short amount of time.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price moves. Total return includes both the price movement and the cash distributions paid out to investors.

• Year-to-Date (YTD): The price return is approximately -2.66%. However, the YTD total return is positive at about 0.25%.

• One Year: The one-year price return is approximately -2.85%, while the one-year total return is about 1.53%.

• Three Year: The three-year price return is approximately 1.74%, but the three-year total return is much higher at about 16.84%.

To visualize the price change, we can look at an estimated price from roughly one year ago. The estimated price was about $47.65, and the current price is $46.29. This shows a decline in the share price over that period.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 4.51%. These payments usually happen monthly, with the most recent trailing distributions totaling about $2.09 per share. Because these payments happen frequently, the most common day for a distribution is Monday.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be a sign of erosion, it is not proof of it. For this ETF, the erosion-risk score is 94, which is labeled as "Stable / sideways," and the erosion severity is rated as "good." There is no severe erosion-risk flag for this fund.

Pros

• The total return figures (which include distributions) have been positive over the one-year and three-year periods.

• The fund has a high income rating grade of "A."

• The erosion-risk measurements suggest the fund is currently stable.

Cons

• The share-price return (price return) has been negative for both the year-to-date and one-year periods.

• Investors should remember that a high distribution yield does not guarantee that the share price will stay the same.

Beginner takeaway

When looking at JSCP, it is helpful to distinguish between the share price and the total return. Even though the share price has declined recently, the total return—which includes the cash paid out to investors—has remained positive over several timeframes. Always look at total return to get a fuller picture of how an income-focused ETF is performing.